The skyline in Kenya

Kenya Monetary Policy November 2022

Kenya: Central Bank continues to tighten monetary policy in November

At its 23 November meeting, the Monetary Policy Committee (MPC) of the Central Bank of Kenya increased the Central Bank Rate by a further 50 basis points to 8.75%. The move came on the heels of Septembers 75 basis point hike, when the tightening cycle resumed.

The MPC aimed to further anchor inflation expectations; headline inflation accelerated to 9.6% in October as food inflation rose to nearly 16% amid adverse weather conditions and supply chain disruptions. Fuel inflation picked up to a near 13% in October as the fuel subsidy was scaled back. With regards to economic activity, the Bank noted that Q2 2022 GDP data showed a strong performance, which should be continuing in H2, providing further room for the hike.

In its communiqué, the MPC did not include any new forward guidance. The Bank reiterated that it will “closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take additional measures as necessary”.

The next meeting is scheduled to take place in January 2023, but the Bank hinted it could meet earlier if conditions warrant.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest